Singapore’s ST Engineering is selling its US shipyards VT Halter Marine and ST Engineering Halter Marine and Offshore (STEHMO) to Bollinger Shipyards Lockport for $15m in cash.
The group said the sale follows challenges and losses in the past years operating the two US shipbuilding and ship/rig repair businesses. The two units combined incurred a net loss before tax of $256m from 2017 to 2021, with an annual net loss before tax ranging from $40m to $60m.
“After a thorough review of strategic alternatives, we made this difficult decision to exit the US marine business,” said Vincent Chong, president and CEO of ST Engineering, adding: “We believe that this proposed transaction represents a favourable outcome for ST Engineering shareholders, Halter Marine and STEHMO as well as their stakeholders.”
ST Engineering may also receive post-closing earnout payments of up to some $10.3m should Halter Marine be awarded certain future shipbuilding contracts, provided that the contracts meet the requisite operating profit margins.
Bollinger’s acquisition includes 378 acres, comprising two shipyards in Pascagoula and two dormant yards north of Pascagoula. The newly acquired yards will be renamed Bollinger Mississippi Shipbuilding and Bollinger Mississippi Repair. The Pascagoula facilities are capable of producing panamax-sized vessels up to 50,000 dwt and feature an expanded 225.6 m tilt-beam launch system.